AirAsia’s Q3 net profit soars 81%

> Group de­clares spe­cial div­i­dend of 40 sen per share for fi­nan­cial end­ing Dec 31 2018

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: AirAsia Group Bhd’s net profit for the third quar­ter ended Sept 30, 2018 rose 81.24% to RM915.88 mil­lion from RM505.33 mil­lion a year ago due to a one-off gain on the sale of Ex­pe­dia and re­ver­sal of de­ferred tax li­a­bil­i­ties aris­ing from the dis­pos­als of air­craft.

In Au­gust, the group had dis­posed of its re­main­ing 25% stake in on­line travel agency AAE Travel Pte Ltd to Ex­pe­dia Inc for US$60 mil­lion (about RM240 mil­lion), re­sult­ing in a gain on dis­posal of RM230.4 mil­lion.

Op­er­at­ing profit for the quar­ter was lower at RM253 mil­lion com­pared with RM494 mil­lion a year ago, mainly due to the in­crease in fuel ex­penses. The to­tal fuel con­sumed dur­ing the quar­ter rose 5% to 2.66 mil­lion bar­rels from 2.54 mil­lion bar­rels a year ago.

Av­er­age fuel price dur­ing the quar­ter was 50% higher at US$95 per bar­rel from US$63 per bar­rel a year ago. Ex­clud­ing fuel ex­penses, costs were fairly well con­trolled, show­ing a re­duc­tion of 2% of CASK ex-fuel.

Rev­enue for the quar­ter rose 6.58% to RM2.61 bil­lion from RM2.45 bil­lion a year ago due to a 9% in­crease in to­tal pas­sen­gers car­ried to 10.80 mil­lion from 9.89 mil­lion a year ago.

Over­all unit pas­sen­ger rev­enue rose 1% to RM222 from RM221 a year ago, as a re­sult of av­er­age fare in­crease of 3% to RM177 from RM172 a year ago. Ca­pac­ity grew 16% to 13.23 mil­lion from 11.40 mil­lion a year ago while seat load fac­tor fell to 82% from 87% a year ago.

For the nine months ended Sept 30, 2018, net profit rose 90.90% to RM2.42 bil­lion from RM1.27 bil­lion a year ago while rev­enue rose 10.30% to RM7.78 bil­lion from RM7.05 bil­lion a year ago

The group has de­clared a spe­cial div­i­dend of 40 sen per share for the fi­nan­cial year end­ing Dec 31, 2018 amount­ing to RM1.34 bil­lion, payable on Dec 28, 2018.

AirAsia said the op­er­at­ing en­vi­ron­ment has im­proved in the fourth quar­ter of 2018 com­pared with the third quar­ter. Com­bined with the up­com­ing year-end hol­i­day sea­son, the group said load fac­tor is hold­ing strong while over­all av­er­age fares have in­creased year-on-year.

“For the full year, we are on track to achieve a group load fac­tor tar­get of 85%. We will con­tinue to em­pha­sise our One AirAsia ini­tia­tives to fur­ther re­duce costs, while im­prov­ing the over­all op­er­a­tional ef­fi­cien­cies and ac­tively mon­i­tor each route’s prof­itabil­ity,” it said.

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